Oil Price - June 21

[dan_s]

Oil flops around $65/bbl and it will probably stay around that mark are reality of the new OPEC quotas sinks in.

“It does seem that Iran and the other OPEC members are acknowledging there has to be some sort of compromise and they are probably better off agreeing to a modest increase in production rather than the deal collapsing,” says Tom Pugh, commodities economist at the Capital Economics. consulting firm.
Saudi Arabia Energy Minister Khalid al-Falih says that as the world is likely to face a large oil supply deficit in H2 2018, a substantial production increase from OPEC will be required to prevent a market squeeze, adding that "We will release supply... One million barrels per day sounds like a good target to work with."
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So ..... the question is: Why has OPEC's production been so far below their quotas for the last eight months (700,000 BOPD in May) if they have the ability to raise production this much?

Raising quotas on paper and actually producing that much more oil are two different things.

[dan_s]

At 10:47 AM ET from Reuters: "Iranian Oil Minister Bijan Zanganeh said that he was feeling “very good” about OPEC’s production levels and indicated Iran could accept a modest supply hike, suggesting that members may be moving closer to an agreement ahead of their 174th official meeting on Friday in Vienna. The meeting will kick off Friday at 3:30AM ET (7:30GMT) and a press conference is tentatively scheduled for 7:00AM ET (11:00GMT). That meeting will be following by a gathering of OPEC officials with their non-member allies on Saturday."